National Grid hails 21% jump in profits - but US Superstorm Sandy will cost it £100m

National Grid has revealed a 21 per cent jump in first-half profits after boosting revenues and controlling costs.

Pre-tax earnings were £1.1billion, while operating profit rose by 7 per cent to £1.59billion in the six months to September 30.

National Grid hailed recent business and investment progress, but added that Superstorm Sandy on the US east coast at the start of this month would cost it around £100 million.

Powering up: The firm said it had increased capital investment in its UK transmission business

The firm said it had made improvements to the way it responded to storms in the US, adding that its teams restored power to around 400,000 customers affected by the latest superstorm within three days.

Chief executive Steve Holliday said: 'I am pleased with the progress we made in the first half of the year - operating our networks safely and reliably and delivering a record level of investment.

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'This good first half-year performance reflects increased net regulated revenues driven by our growing asset base and tight control over operating cost growth. Increased investment in both our UK and US operations is in line with our forecast.'

The organisation said it had increased capital investment by 23 per cent to £1.8billion in the latest financial period, mainly due to a 34 per cent rise in investment in its UK transmission business.

A union representing workers at National Grid said its 'bumper' profits came at a time when people were struggling to pay their bills.

The GMB also warned of possible industrial action over plans to transfer employees to contractors.

Gary Smith, national officer of the GMB, said: 'People are entitled to ask what is National Grid putting back when they have outsourced and plan to outsource more and more jobs.

'Hundreds of National Grid staff are facing being transferred out to contractors. This has implications for the pay, conditions and pensions of loyal National Grid employees, many who have given decades of dedicated service.

'GMB members want to take action and we are encouraging other unions to join us in a campaign up to and including industrial action to stop this shameful attack.'

Shares in National Grid were up 1.5p at 695.5p in early afternoon trading.

Income shares watch: National Grid raised its half-year dividend by 4 per cent to 14.49p. The shares yield 5.7 per cent.